Firstsource Q1FY26 Profit Grows 25.1% YoY to ₹1,693 Mn; Revenue Jumps 24.5%, Guidance Raised on Strong Demand

Mumbai, July 30, 2025 — Firstsource Solutions Ltd (NSE: FSL) reported a robust Q1FY26 performance, with consolidated net profit rising 25.1% year-on-year (YoY) to ₹1,693 million, driven by broad-based growth across key verticals. Revenue from operations surged 24.5% YoY to ₹18,875 million, supported by strong client additions, increased digital adoption, and expanding healthcare and BFSI segments.

The company also raised its full-year revenue growth guidance to 18–20%, citing sustained client momentum, ramp-ups in key contracts, and continued traction in its digital-first offerings. EBITDA for the quarter rose 22.3% YoY to ₹2,354 million, while the operating margin remained healthy at 12.5%.

CEO Vipul Khanna highlighted continued investments in automation and GenAI as key enablers of long-term margin expansion. The order book remained strong, and the company reiterated its focus on high-value transformation-led engagements, particularly in North America and Europe.

Consolidated Financial Highlights (₹ in million)

Firstsource Solutions Ltd delivered a strong financial performance in Q1FY26, with revenue from operations rising 24.5% year-on-year (YoY) to ₹22,209.34 million and 2.5% quarter-on-quarter (QoQ). Total income stood at ₹22,244.78 million, up 24.1% YoY and 2.8% QoQ. Profit before tax grew 27.5% YoY to ₹2,132.29 million, while net profit after tax (PAT) climbed 25.1% YoY to ₹1,693.25 million.

The company also reported a 25% YoY increase in diluted earnings per share (EPS) to ₹2.40. However, total comprehensive income dropped sharply by 66.5% YoY and 66.2% QoQ to ₹480.60 million, mainly due to currency fluctuations and mark-to-market losses on hedges. The results were accompanied by an unmodified audit opinion for both standalone and consolidated accounts.

Key Highlights

Firstsource Solutions Ltd. reported robust revenue growth in Q1 FY26, driven by consistent performance across key verticals and geographies, particularly in the healthcare and BFSI (Banking, Financial Services, and Insurance) segments. The company maintained healthy profitability, with the PAT margin at 7.6% and diluted EPS improving from ₹1.92 to ₹2.40 YoY.

However, despite solid operational results, total comprehensive income declined sharply to ₹480.60 million due to other comprehensive losses amounting to ₹1,212.65 million, primarily from mark-to-market losses on foreign exchange hedges amid currency volatility. The management raised its FY26 revenue guidance, citing strong deal momentum, digital transformation initiatives, and a healthy pipeline in the U.S. and UK markets.

Stock Performance

As of 3:30 PM IST on July 30, 2025, Firstsource Solutions Ltd’s stock closed at ₹335.50, up 1.67% or ₹5.50 for the day, after trading between a low of ₹326.75 and a high of ₹348.05.

Management Commentary

Dr. Sanjiv Goenka, Chairman of Firstsource Solutions, stated, “We’ve begun FY26 on a positive note, building on the momentum of a breakthrough FY25. Our differentiated UnBPO™ approach and AI-powered platforms like relAI™ and Agentic AI Studio continue to drive value for clients and stakeholders.”

FY26 Outlook

Firstsource Solutions Ltd has revised its revenue growth guidance for FY26 to 13–15% in constant currency terms, up from the earlier projection of 12–15%, reflecting strong deal momentum and expanding client base across the BFSI and healthcare verticals. The company maintained its EBIT margin outlook in the range of 11.25% to 12%, citing ongoing investments in digital transformation, operational efficiencies, and a robust demand environment in North America and the UK.

Company Overview

Firstsource Solutions Ltd (NSE: FSL, BSE: 532809) is a global provider of Business Process Management (BPM) services, operating across healthcare, banking & financial services, communications, and diverse industries. Headquartered in Mumbai, it is part of the RP-Sanjiv Goenka Group and is listed on both NSE and BSE.

REF:https://nsearchives.nseindia.com/corporate/FSL_30072025162806_OutcomeofBoardMeetingQ1FY26.pdf

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